How does a point of sale system work? Top questions answered

When asking yourself “How does a point of sale system work?” the basic answer is that it is a collection of tools to help a business complete transactions. But this answer quickly changes when factors like type or size of business change too.

There is no “one-size-fits-all” for point of sale (POS) systems, but there are options that can streamline your business processes and be tailored to your specific business needs. Let’s discuss some common questions around understanding and choosing a POS for your business.

How does a point of sale system work for the average small business?

The days of working with bulky cash register assemblies during the day and the manual entry of sales results into a spreadsheet at night are gone. The most effective of today’s small business point of sale systems are electronically based. This allows the system to do more in less space and less time.

The new core features in a point of sale solution will offer these technology basics:

Cloud-hosted applications and data management.Mobile-friendly options for business management and customer service.Virtual storefronts and terminal options.POS integrated tools in the cloud such as online booking or web-based invoicing.

These exciting innovations are scalable to the typical small business and are attainable for any budget. The best thing is that the technical foundation in today’s POS software offers the same power and abilities enjoyed by enterprise-level corporations, enabling you to remain highly competitive regardless of the market.

Where do I begin choosing between all of the options?

As mentioned earlier, the options you need will largely depend on a variety of factors like size and industry. For example, one-person shops don’t need the same amount of time to review payroll or staff scheduling options that a larger operation may need. 

And niche boutiques with a multichannel presence will need advanced data management and the ability to run online ordering sites and in-store sales from one set of POS tools while straightforward shops may not invest as much in an online presence.

Retailers

Inventory controls and seamless transaction monitoring are vital in this industry. It is not just about tracking sales and having inventory updated fluidly with every sale; these businesses need a POS system that can just as accurately add products back into inventory from returns or exchanges. 

Restaurants

Having precision data is important here. Menus must be capable of being updated digitally, especially for restaurants offering contactless dining via an online ordering website. Staff management, including tip tracking and table turnover rates, are highly accurate using today’s POS business tools.

Quick service restaurants and cafés

Online ordering via smartphones or an in-store kiosk is ideal for optimizing performance in these fast-paced environments. Employees can quickly view and fill orders due to an uninterrupted flow of ordering data. POS technology streamlines your processes so that customers are happier through orders that are quickly and accurately filled.

Salons and spas

The mobile aspect of today’s POS systems gives stylists the ability to utilize tablets in their daily routine. The latest styles can be quickly looked up, with styling products and services quickly tallied and paid for while the customer is still in the chair. Scheduling is optimized using online booking tools allowing stylists to stay on track; they can even synchronize into popular calendar apps such as Google.

The variety of features and functions despite the nuances of different business models demonstrates the flexibility of the modern POS solution. Each owner must invest the necessary time and effort into determining which features perfectly suit their business to maximize their ROI.

Will my customers flock in wonder or run for the hills?

Of course, any change you make will impact the customer experience in some way, even if the changes are all behind the scenes. As helpful as feedback can be, it is not realistic to ask every customer what they think, outside of soliciting the opinion of a few core regulars. So what can you do to vet out your new technology and to prevent the customer with a bad customer service experience from jumping ship? How can you ensure that your new POS tools are inviting to those who visit you?

An effective way to manage the customer experience is to leverage the same new POS system to build a gauge by tracking sales and service trends. The advanced reporting capabilities will allow you to see even the smallest changes in customer behavior, allowing you to quickly correct course and make adjustments to your operating model.

But how does a point of sale system work financially?

Any discussion about technology that includes the words “new” or “latest” is bound to create questions about cost, affordability, and ROI. But the fact is that almost any new technology is accessible for any budget, especially when a targeted or priority approach to a POS  implementation is applied. This is especially easy using the scalability of modern POS solutions.

The engineers at talech have mastered the ability to scale innovative POS solutions to the businesses that need them. This keeps costs down and helps business owners learn more about how their new point of sale systems work. Contact us to learn more about our POS solutions or to take part in a free demo.